Salem-Keizer Public SchoolsBudget Message 2011-12

All students graduate and areprepared for a successful life.

Budget information available online at www.salemkeizer.org

10 Years of Funding History

03-0

4

Cuts: 02-03 through 05-06

Adds: 06-07 through 08-09

Cuts: 09-10 through 10-11

FTE changes over time

2002-06cut

2006-09added

2009-11 cut

Licensed Staff (64) 167 (12.5)Classified Staff (127) 69 (8)Supervisory (14.0) 8 (1.5)

In the 2009-10 budget process Federal Stimulus Funds paid for 31 FTE licensed staff, 15 classified staff and 1.5 supervisors.

Has student achievement improved?

Our VisionAll students graduate and are prepared for a successful life.

Academic Achievement: Reading

The graph shows the percentage of students meeting or exceeding state standards

Academic Achievement: Math

The graph shows the percentage of students meeting or exceeding state standards

Academic Achievement: Science

The graph shows the percentage of students meeting or exceeding state standards

Academic Achievement: Writing

The graph shows the percentage of students meeting or exceeding state standards

Our current reality

Our Challenge…• This budget is built on a $5.8 billion funding level

for K-12 education• Our shortfall will likely be as high as $55 million.• The numbers keep changing…• May forecast• May adjustment• Ending Fund Balance• Legislative action• We need our employee groups to help solve the

shortfall.

How is the shortfall determined?We start with the premise that we will maintain our current service level and then we add costs for:•Restoring 4 furlough days •Negotiated salary and benefit increases (Steps and COLA)

•Projected increase in student enrollment•Inflation•Loss of federal funds (AARA)

•A substantial increase in the PERS rate

For 2011-12 we estimate this cost to be $379,391,404

How is the shortfall determined?

We wait to see how much funding is allocated by the State of Oregon. This year, the State has less money to allocate .

We estimate our total revenue to be:$313,396,285*

*Includes flow through revenue from property taxes, WESD in lieu of services, interest earnings and fees.

Here is the math:

Estimated revenue for 2011-12 $313,396,285

Costs to maintain current service levels $379,391,404

Shortfall $ -65,995,119

How is the shortfall determined?

Addressing the shortfall….

Total shortfall: $ -65,995,119

Apply the following to offset the shortfall:

•Projected Ending Fund Balance $12,000,000*

Remaining Shortfall $-53,995,119

*Does not include May adjustment from ODE

Amount of shortfall remaining : $-53,995,119

Apply the following to offset the shortfall:

•PERS Reserves $5,000,000

•Transfer from Capital Maintenance* $1,635,000

Amount of shortfall remaining : $-47,360,119

*These costs will now come from bond funds.

Addressing the shortfall….

Amount of shortfall remaining : $-47,360,119

•Program reductions/eliminations $34,307,231

Amount of shortfall remaining : $-13,052,888

•Employee concessions and/or additional cuts. $13,052,888

Balance $0

Addressing the shortfall….

VisionStrategic Plan

Community listening sessions this fallStaff communication groups

Input from principals and other supervisorsPublic hearings

Feedback/input through outreachKey community leader communication groups

These all factor into the decision-making process.

How do you decide what to cut?

What we can do What must be negotiated

Raise class size Salary Adjustments

Eliminate or reduce programs

Furlough Days

Reduce central services Benefit Packages

How do you decide what to cut?

How do you decide what to cut?

The proposed reductions

Support and Central Administration$7.6 million/66 FTE

10 administrators 28 custodians 9 maintenance workers15.00 classified support staff3.5 licensed staffRepurpose 3 small schoolsReductions in the funds available for • Textbooks, computers and software• Contracted services• Operational costs

What are the proposed cuts?

Instruction $26.7 million/335 FTE:

248 licensed staff members• 160 classroom teachers, 48 library media teachers, 10.5

literacy teachers, 6 elementary PE, 3 elementary music, 19 counselors, 1 behavior specialist .

87 Instructional assistants or classified staff.Elimination of general fund allocation for middle school

after school programs and 6th grade jump start.Reductions to athletics at the secondary level.Reduction in the number of teacher differentials

What are the proposed cuts?

Reductions to the budget must be: Legally compliant Sustainable Operationally sound Support academic achievement for all students

We must downsize the organization to balance the budget and prepare for additional reductions

in 2012-13.

There are no easy cuts

Our current projections indicate additional cuts in2012-13 in the range of $20 – $25 million.

For the biennium (2011-13) that could mean reductions of up to $80 million.

We will be making additional cuts for the 2012-13 school year.

There are no easy cuts

What is the bigger issue?

Our Vision:

All students graduate and are

prepared for a successful life.

Tuesday, May 3 The budget committee will hear public testimony until 9:00 p.m.Wednesday, May 4 from 6 – 8 p.m. The budget committee will hear public testimony until 8:00 p.m. and will

begin deliberations at the conclusion of the testimony.Monday, May 9 from 6 – 7 p.m. The budget committee will hear public testimony until 7 p.m. and will

begin deliberations at the conclusion of the testimony.Wednesday, May 11 (if needed) The committee will continue deliberations and will vote on a budget to

recommend to the School Board. All meetings begin at 6:00 p.m. and will be at Claggett Creek Middle School

Tuesday, June 28 – Budget Adoption The School Board will adopt the budget. Location to be determined.

Upcoming Meetings